Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.5, 2013 Model of Role Strengthening of Traditional Market Based on Social Capital in Indonesia: Study Case Beringharjo Market, Jogjakarta Dessy Febrianty Center of Social Economic and Environment Research and Development Centre, Ministry of Public Work, Indonesia (Operational Unit of Social Economic and Environment on Housing and Human Settlement) [email protected] Abstract A traditional market has an important role for economic in a society of developing countries. In its worse condition with the presence of modern market, any efforts which have been done to revitalize the traditional market tend to face a failure because of it has not been looked at the social aspect and is only shown the physical and economical aspect. Meanwhile the social aspect (such as a social capital) is very significant for the dynamic and the sustainability of the market. This article provides how the social aspect (social capital) become an important part of market revitalization which is more optimal. By using qualitative method, this article is seen the dynamic of social capital between traders in Beringharjo Market, Jogjakarta. The result of study shown that the opportunity of strengthening and or weakening of the operation, function and role of the traditional market from each actor based on the capacity and competence of the key actors in the traditional market. The determination of power assessment on utilization of social capital by stakeholders of traditional market due to the support of stakeholders’ network and power of trust which executed in form of the existing norm and value pattern. Keywords : Traditional market, social capital, revitalization and social network 1. Introduction A traditional market is a workplace which has many strategic values for small traders. From an economical aspect, the traditional market has proven effectively one of the places where the money turns around, which mean the strength of economical structure in the micro level. However the traditional market condition currently facing an external and internal problems which have a big impact to their existence. From the external side, the competition with the modern retail which very expansive makes the traditional market is more deserted by its customers. Even the development of modern retailer has entered the outskirts of city area since the policy of trade deregulation comes out in 2008 (Suryadharma: 2008). Beside it, the traditional market is facing the reality that the existing policy is not enough to protect their existence. It is also in the internal side the traditional market is facing reality which physically in bad condition, develop without planning, and operate excessive out of its area. It impacts the traffic jam around, uncomfortable for customers and for the merchants operation, fire resilience and become a bad element of city and its area include urging slum around. The existing market management is not able to handle the problems and is not able to anticipate the changes and to create a clean, comfort and secured market. • • Many efforts have been done by government or non government parties to revitalize the traditional market. The policy related to the traditional market in national level is released by 9 (nine) related ministries. It shows the government’s big attention on development of the traditional market. The revitalization program which has been done more in physic aspect such as physic building and location managing, also setting the regulation related to traditional market. In facts, there are many found that markets have been renovated and have a far better new buildings, but they are not used well. Many kiosks are closed and the traditional market tends to be more desolated. It can be seen in the program of traditional market revitalization which has been done in several markets in Semarang, Dargo Market, Sampangan Baru that their activities become not optimal. This reflects that the physic aspect only is not enough to be addressed, but there is another aspect has not been counted in the implementing revitalization. Leksono (2009) sees it is not only competition problem with the modern market making the traditional market is deserted by the buyers. The matter is more dominated by the collapse of social capital in the traditional market. Slowly, the social capital in the traditional market begins to vanish. The social capital has become a symbol and a 115 Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.5, 2013 characteristic of existence of the traditional market which has degenerated and toward collapse. The existence of social capital is not experiencing the regeneration in the social interaction in a market which lasting in such rapid. But instead being replaced by the incessant the product advertising and the strong competition between the merchants. The bargaining process according to Leksono, is a strength in developing the social capital. Where in the bargaining process occurs the interpersonal contact between merchants and buyers which is not only an effort to determine the price. The disappearance of the social capital which is had by society can be seen how the market society facing their own problems. It consists of the appeal of attitudes mutual suspicious, lack of trust, ignorant, oportunist and there is no association/ guyub concept in the traditional market. As a result of the disappearance of social capital also means the disappearance of participation in traditional market 1. At least the thought of Laksono reflects that the market revitalization is not enough only using the physical and economical approach, but it is worthy to count the social cultural aspect as an united part. Several empirical facts show that several practice of traditional market revitalization which concern the social aspect in reality gets optimal result compared to which do not count this aspect. This can be seen in the success of market revitalization Segamas in Purbalingga which do not haul the old merchants, and even use their social capital power (network) to new develop it is proven to make customers feel welcome and comfort trading in the market. The other success example is the revitalization of Pasar Baru in Bandung which remains becoming customer’s attraction from the other areas, even as reference for tourists. And the most outstanding is the revitalization of Tanah Abang market as the famous textile market in South East Asia. The explanation above shows that the sosial aspect is a dimension which intangible and often less measure compared to the physic and economical aspect. But the position is very significant means for the continuity of traditional market. Social capital as it said by Laksono is one of his representation. Of course there are more other social aspects, but in many social studies about market, the social capital appears as a social aspect which is dominant and potential for market continuity. Therefore this article attempts to provide how the social aspect (social capital) becomes the important part of market revitalization which is more optimal. 2. Social Capital On Social Structure A social capital is a society ability to work together for reaching the same goal in a group and an organization (Coleman, 1990). In the social capital consists of the following elements: • Bonding social capital is a strong network which is horizontal between individual, group or institution which has similar characteristic (demographic character, background, self identity, as well as norm and value pattern). • Bridging social capital is network between individual, group or institution with different characteristic (bridging social capital based on similar interest which towards the transformation of norm and value pattern). • Linking social capital is a vertical relations which formed between individual, group or institution who has different power (linking social capital based on the interest regardless the different background). The social capital is not a single entity, but it is various from several entities with the 2 main elements which are the social structure aspect and the ability to facilitate activities in the structure. The social capital works such as economical capital, physical capital, and human capital, namely there is benefit or advantage which can be obtained from its existence. The social capital is possible to reach output from the determined activity which brings an advantage together for the people who involved in it, where the absence of this social capital will inhibit the achievement of the output. 1 The worse a traditional market signs the more disappear of social capital. The worse because all run on individual work description. It is no more by a consciousness in java language called as ‘melu handarbeni’, or feel belong and then all feel binding to maintain and keep the market comfort. Taking over the hall for pedestrian or market visitor in order to be able freely to bargain and transaction is also a symbol of plummeting of social capital because the hall is taken to place the goods for interest of economic capital accumulation. 116 Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.5, 2013 Coleman (1988) shows 3 forms or manifestations of social capital. The first is obligation, hope, and trust. The social relations and social structure which exist in community is facilitating formation of manifestations of the social capital. One of elements of social relations which is important enough to grow the norm is closure of social networks. The norm appears as one of efforts to limit the negative influence from the external environment and to urge the development of positive influence. This only can be reached if there is closure of social structure and network. The other social structure is the organizations which are social (social organization).